Why Do You Have to Know about Products, Suppliers, Clients? Leave a comment

Case

Some of our company’s business is to provide import and export agents for companies that do not have foreign trade rights. According to the company regulations, in the case of financial security, the salesman must understand the import and export products, the credits of suppliers and customers. I feel that the agent only needs to manage the receipt and payment of funds, control the risk of funds, do not need to join in other things. Is my understanding right?

Analysis

“You can never be too careful,” this sentence is very reasonable. In the field of foreign trade agency, it is equally applicable.

Society is very complex, and so is the foreign trade industry. You may think that the agent only needs to provide customs declaration information and collect the money to pay. All other things are following the agency agreement. And the problem is the consigner’s responsibility. There is nothing wrong with the above point of view in theory. But in reality, people often use this kind of psychology to exploit loopholes.

Example

Foreign trade company agented a batch of business exports. A domestic company found them through an acquaintance, then signing agency agreements, shipping, and collecting foreign exchange. Soon, the company issued a VAT invoice, and the foreign trade company paid together with the tax rebate paid in advance. The matter was over for them. But, About half a month later, the Foreign Taxation Bureau found them and said there was something wrong with the VAT tickets. The invoicing company is suspected of fraud, virtual invoicing, etc. However, this company can’t even find anyone. The tax loss of this invoice can only be borne by the foreign trade company that received the invoice. It has no choice but to bear the losses.

They spent time proving that they were victims, not the accomplice. They tried to find the people they used to contact, but those people seemed to have disappeared. Then, they asked the acquaintance, but he said, “you did the business and the contract by yourself, and you must bear the risks. ” Finally, all the losses can only be taken by foreign trade companies. Therefore, you must be careful about the details of suppliers, products, and clients.

Here is another example. The goods of a foreign trade company are inspected at the port. The customs declaration showed it was furniture, but the customs opened the container and found rice in it. The state strictly regulates rice exports, and exports require quotas. This act of transporting rice in the name of furniture is smuggling and crime. Then the customs first check the foreign trade company. This batch of goods is declared in the name of the foreign trade company. The first person responsible is, of course, the company. As for the foreign trade company saying that it does not know what goods are shipped, just acting as an agent, these explanations may bring a slight relief from the penalty. But fines are inevitable. Maybe the relevant responsible person must bear criminal responsibility, and the customs level will also decline.

Suggestion

Therefore, foreign trade companies must have a sense of risk prevention. For the business, the person in contact and the goods involved, you must know clearly. There is no justification for the goods exported in the name of your company that you do not know anything. You can only blame yourself for not strict control, and management is not standard.

I have a habit. If there is a new manufacturing plant or a new product for export, I usually go to the site to check it when packing. On the one hand, I understand the product and let the client feel that although we are just the agent, we are still responsible. On the other hand, it is for safety. I also want to make sure that the goods shipped and the customs declaration are consistent. In this case, stop immediately if there is a problem. Acting as an agent is to make a little profit. You should not take on some additional risks. It is better not to make a profit than to put the company in danger.

 

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